Insurance idiocy

The attempt to demonize insurance companies continues apace.  We are still being subjected to the litanies of the “evils” of the insurance industry that Obamacare will save us from.   This is coming from people who either don’t know anything about how insurance works or don’t care that they are spreading deliberate falsehoods.

For example, we keep hearing that people get their insurance cancelled just because they get sick.  No one bothers to check and find out that this has already been illegal in all 50 states for at least 20 years.

We are also told that the ban on considering pre-existing conditions will prove to be a great boon to all.  Really?  If  no pre-existing condition can ever be considered, why would anyone ever buy insurance beforehand?  Just wait to get sick or injured and demand that you get covered then.  Why would you buy car insurance before the accident if you were guaranteed that you could get it afterward and still have your claim paid?  This will bankrupt insurance companies once this begins to be enforced.   Once the companies are out of business, what good will any of these delightful mandated benefits do anyone?  I really think that this is the deliberate intention of many of the authors of this bill although they won’t be honest enough to admit it.  Then they can claim that the private insurance industry “failed” and government has no choice but to take over.

Finally, as one who works in the insurance industry (life rather than health but still had to study the entire field to get licensed), let me explain the real poison pill in this legislation.

For 100+ years, the standard for an insurance company to be considered financially stable is that they pay no more than 65% of income out in claims each year.  The remaining 35% has to go for everything else: all operating expenses from the salaries of every single employee, to the electric bills and on down to the pencils and copy paper as well as sufficient reserves to cover any major catastrophic event that may occur.  Keep that 65/35 split in mind!

One of the little hidden “gems” in the Obamacare behemoth is the mandate that insurance companies must pay out 85% in claims each year.   Think about that for a minute…let it sink in….  By legislative fiat, every single health insurance company in America has just been ordered to become financially unstable!  Somehow they have to make 15% cover what 35% used to cover.   Somehow I don’t think this is going to end well!

If the geniuses in Congress are not deliberately trying to bankrupt insurance companies, then they are proving themselves once again to be some of the most clueless idiots we have  ever seen on the national stage.

You can pass legislation mandating that elephants will fly, but it doesn’t change the laws of physics!


About stevehull

Music director in Naples, FL
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